Answers to Club Med (B) Case Study 1) Are there problems in the recruitment process? Why? What are your recommendations? Club Med, by understanding the case, is considered an high potentially turnover company, since it’s natural characteristics on type of business, and also, type of framework, mainly focused on person specifications, extremely dated on time. Having considered these aspects, it seems obvious to the reader that Club Med is wrongly approaching the recruitment process, as a whole, consequentially affecting the company’s business on GO’s work condition. In order to clearly structure the recruitment problem, we’ve decided to split the global problem in several urgent issues to solve, being them, the selecting process, the explaining work conditions process, non-existence of training module, the overlapping of GO’s recruits, and the specific framework used on recruiting. Selecting Process

As understood, Jacky, in Club Med is receiving around 10.000 CV’s or résumés in response to the ads posted. Very briefly, we have to consider that, due to some conflicts, represented by the quitters or fired GO’s comments, Med Club isn’t always, recruiting the best oriented to that type of work-style people. They advertise it as being an adventure, and not only a work. Indeed, as we will understand by the following aspects, the selection problem is directly related with the approach of the market, and by having the wrong type of exigency when choosing the right GO’s. Explaining Work Conditions

“It is not a work, it is an adventure”. This is the main idea passed to the global interested people in GO’s position at Club Med. In fact, considering some of the comments made by chiefs and quitting GO’s, we can assume that something is wrong explained, because many GO’s aren’t perceiving their work, properly as an adventure, but more as a really tough work, which compensations, for instance, the usage of sports equipment on free time, don’t help at all, since GO’s consider their work as “work-sleep-work-sleep”. Once again, this topic will be related with the framework topic, because what is missing is a detailed explanation about how the work really is, allowing recruits to expect the 100% idea of work, making them ready to the work circumstances. By recruiting with a defined talent, we will be approach the competency framework model. Training Module

The training Module is clearly a main issue, and by recruiting GO’s without any previous training, many conflicts during the work suddenly happen because GO’s have no idea at all of their limitations, attitudes needed, work routines, in resume, information. Information and training are crucial to keep GO’s aware of what’s asked from them, and also to have more productivity on GO’s recruited, because obviously a training module will incurre in some additional costs, however, overlapped costs by saving time, irritation and capital, on avoiding recruiting more and more GO’s. Also, due to the lack of training, chiefs usually fire GO’s immediately when they see some unusual behaviour, and the main problem driving those fires is the lack of training. Overlapping of Recruits

Recruiting 450 to 500 GO’s to cover 300 available spots is a risky situation, anyhow, without major concerns to company. However, by reducing this number a little bit near 300, would allow company to keep up a safety measure, but reducing the waste, on time and on GO’s potentials career, because as understood by one irritated comment from a GO not allocated, after some time, the GO’s are extremely angry and don’t want to be located anymore. Would be helpful, to reduce those concerns. Competency Model Framework

We arrive at the top problem in recruiting. The current model used by Club Med is driven by the specific job they are looking for, or a person specification framework. However, that type of approach is leading Club Med to huge turnovers, once they are recruiting based on time and specifications of work. Assuming...

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...HBS CaseStudy: ClubMed
Turnover is a normal part of any business, and is to be expected. For some, it is common matter, and for others, it can be become a real burden. The idea is not to necessarily eliminate, but minimize the effects of turnover. Turnover can be either voluntary or involuntary. It is the job of managers to come up with solutions to motivate their employees to not only want to stay, but also to help develop them to their full potential.
The current organization at hand is ClubMed. Started in 1950 by a group of friends, ClubMed has since then gone from a nonprofit sports organization to the ninth-largest hotel company in the world. As the size of the association grew, managing it also became more and more complex. It was in 1954, newly appointed managing director, Gilbert Trigano, saw a commercial opportunity in the concept of turning the association into a business. By 1985, the Club, also known as, Club Mediterranee had become a publicly owned company on the Paris Stock Exchange and encompassed 100 resort villages that could host up to 800,000 vacationers.
In the organization, each resort village is made up of one “Chief of the Village” (general manager) and seven assistants called “Chiefs of Service” whom each oversee the activities of 80 congenial hosts – also known as GOs – who...

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Trouble in Paradise
Casestudy on ClubMed
Author Ilse Kukler
Words 1496
June 2015, Avans Breda
ClubMed
In 1950 ClubMed, short for Club Mediterranée, was born as the first company that offers all-inclusive holidays. It originates from France and the idea was created by Gérard Blitz and Gilbert Trigano who started the all-inclusive concept with this company. ClubMed has had a total of 140 holiday villages, however this number decreased to 70 villages they have nowadays. These villages are located all over the world among 4 continents on tropical destinations. ClubMed operates under multiple brand names like Valtur, ClubMed Affaires and Club Aquarius. Next to that ClubMed also handles two cruise lines and is specialized in sporting activities. The members of ClubMed are one third French and two third exists of mainly Americans and Japanese. (ClubMed, 2013)
At one point this all-inclusive resort concept appeared to be the fastest growing trend in the tourism industry. Clubmed...

...CASESTUDY : ClubMedClubMed is France’s largest travel and tourism company, founded in 1950. It was the first company to offer all-inclusive vacation packages, which have become the fastest growing segment within the tourism sector. By year 2000, Club Med’s competition had become intense, and ClubMed needed to refresh its image.
Club Med’s concept had become outdated, even though it had more than 100 resort villages in some of the most gorgeous locations in the world, visited by 1.5 million guests each year, explained John Vanderslice President & CEO of ClubMed America, a division of Club Méditerannée, at the ATME annual conference in Baltimore this past May. ClubMed, as a brand had a high recognition level, but its positioning lacked clarity, Vanderslice said. "The pricing was perceived as too expensive, and building loyalty and winning new customers had become much harder."
ClubMed needed to renovate many of its villages, revamp its information
systems, and deal with other financial, management and legal issues, he said. "In short, we had to change everything, but …. keep everything the same." In 1997, Club Mediterannée named a new chairman of its board, Philippe Bourguignon, and assembled a new management...

...Is GO turnover really a problem at ClubMed? What are the pros and cons of high turnover?
The main problems that the American HR department faces are: finding the right people to become GO’s and employee job satisfaction. Therefore, finding the right people will radically reduce turnover costs. There are numerous potential causes for GO’s turnover. We can find broader causes (e.g. economic conditions, labor market conditions) that affect general turnover rates and that are difficult to manage. Though, there might be causes for voluntary turnover that are linked to GO’s function (e.g., non-competitive compensation, high stress, working conditions, monotony, and poor direct command) that can be managed. As we analyzed before the main foundations for the problem are in the recruiting, selection and training methods, as well as in the cultural differences between European employees and American/Canadian employees. The suggested methods of finding the right GOs for ClubMed are costly, but are extremely beneficial for the company in the long run because they will cut the high costs of turnover. Human resource managers need assess the current impact of turnover by screening out GO’s potential leavers during the hiring process. Moreover, it is essential to be aware of the turnover rates for different jobs and geographic areas of the company, and compare turnover rates with external standards for addressing employee...

...ClubMedCase Analysis
Introduction
Club Mediterranee was founded by a group of friends in the year 1959 as a nonprofit association,
and it became the ninth-largest hotel company in the world in 1986. Also, “Family Spirit” has
become an indispensable culture as a part of this company. During it is development of the
company and industry. Club Med’s “All-inclusive, club-style” resort model has achieved
overwhelming advantages in this industry. As a result, due to Club Med’s great influence in
travel and hotel industry, it has been in a strong position with respect to buyers, suppliers and
labor. Those advantages has extended Club Med’s relative advantages among its competitors,
therefore, over the years, many companies that had tried to compete with ClubMed, and failed.
However, with the development of travel and hotel industry, increasing number of hotel and
travel companies and agencies keep entering and exiting this field, which bring unpredictable
challenges and threats to ClubMed, for example, as a result of airline deregulation, more and
more agencies entering the market, which lead to higher and higher turnover of agency top-seller
for ClubMed, this company has reconsidered its distribution network and came out a solution to
this problem. Nevertheless, this is not the...

... Is GO turnover really a problem at ClubMed? What are the causes of turnover at ClubMed? How does the international factor play into Club Med’s issues?
ClubMed is experiencing considerable turnover rates with GOs. This turnover can be either good or bad depending on the type of employee that is involved.
Turnover is advantageous if the employee that quits or is terminated is not adding value to the company. This would be functional turnover. The organization should try to stop dysfunctional turnover, which is when a good employee quits for either avoidable or unavoidable reasons.
It is very important that they hire the right people that “fit” with the organization in order to keep the turnover rate of high-quality employees to a minimum.
In addition to high turnover rates, ClubMed also faces cultural differences between its European managers/GOs and American managers/GOs. American GOs are finding it difficult to advance into management positions within the organization. Amzallag needs to recognize and understand that cultural differences exist between European and American/Canadian employees. These differences have a serious impact on communication and management of employees. In order to reduce the negative effects of cultural differences, ClubMed should implement a diversity-training program that...

...ClubMed (A) HBS Case- Strategic Audit in 1986
Clubmed provides cheap all inclusive and social holidays for costumers. These holidays are cheaper than what the customer could replicate by himself. The accommodations are simple, but localised in attractive holidays places. Everything is organised in order for the consumer not to spend any money outside the «clubmed village ».
- Financial aspects:
It is the 9th largest hotel company in the world. The stock was favorite on several Wall street analyst. The company makes $3 million of interest on prepaid holidays, which give confidence to potential investors.
The return on Investment is 11,6%. All the data show the company is healthy and growing (see graphic 1):
- Competitors:
Competition is low and mostly based in Jamaica and the threat is slow from potential entrants and substitutes, as shows the Porter’s analysis. The two main competitors are: Jack Tar, which provides a even more all inclusive solution (including wine and cigarettes) and Super clubs in Jamaica.
Even if the competition is growing, the ClubMed position is very strong and unique on this market. The new competitors focus on « niche » markets or in totally all inclusive offers (eg: including cigarette and drinks in the package), which doesn’t attract the same clientele as Club...

...﻿ClubMedCase Analysis MGMB01
The ClubMed is a successful all-inclusive French organization of vacation resort found in a various sites of the world, mostly in exotic areas. Besides obvious financial success, the Club also achieved huge non-financial success. The unique concept of “family” , which is also the corporation spirit, had transform a group of strangers to a group of loving and caring friends. What’s more, they also developed their own set of marketing and distribution strategies.
ClubMed developed competitive advantages due to its uniqueness and novelty, it differs significantly from conventional hotel chains. Firstly, the Club made a profit of $3million each year merely from customers’ prepaid travel deposits. Secondly, unlike the traditional hotels, the Club arranges roommates to those who travel alone. As a result, accommodation availability is counted as the amount of beds not the number of rooms.
Moreover, ClubMed was in advantageous position regarding the relationship with customers, suppliers and workers. In terms of customers, for instance, the Club controls the market so that buyers can only buy the “true formula” from them. The customers will suffer economic losses if they try to replace the Club with other traveling choices. Club...